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DOI : 10.17640/KSWST.2018.26.2.83 ,    Vol.26, No.2, 83 ~ 93, 2018
Title
Post-economic Analysis of Sewage Treatment Plant using Monte Carlo Simulation
김원규 Won Kyu Kim , 김주원 Joo Won Kim , 변성준 Seong Joon Byeon
Abstract
The sewage treatment plant expansion and the new installation project were carried out before and after construction for reasonable business execution. B/C analysis method is used for general economic analysis. However, B/C analysis by single value may cause policy maker's wrongness due to lack of distribution characteristic. In this study, the Monte Carlo simulation is used in the economic analysis to overcome these shortcomings. The results of the general B/C analysis were 1.5305 for A sewage treatment plant (extension) and 0.5040 for B sewage treatment plant (new construction). The B/C results using Monte Carlo simulation showed 1.50 ~ 1.56 (70.5%) of A sewage treatment plant and 0.50 ~ 0.56 (66.2%) of B sewage treatment plant. The results of the economic analysis suggested by this probability distribution will be able to more flexibly determine the policies related to the sewage treatment plant.
Key Words
Sewage treatment, Post-economic analysis, B/C, NPV, Monte Carlo
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